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The Salvadoran Economy
SUSTAINABLE ECONOMIC GROWTH
After signing the Peace Agreements in 1992, El
Salvador had an economic growth that resulted in
rates of 6-7% at the beginning of the 90’s, staying
within moderat ranges until the end of the decade
and the beginning of the following.
Economic growth has been revitalized in the last
few years, reaching 4.7% in 2007, its highest level
in the last 10 years. This growth came mainly from
the agricultural and service sectors emphasizing
communications, transportation and banking. The
nominal GDP in 2008 reached USD$22,114 million
and the real growth of the economy was 2.5%.
From 1991 to this date, there has been a significant
reduction of poverty, since in 2007 the indicator of
the population living in extreme poverty diminished
from 59.7% to 34.6%.
INTRODUCTION OF SECTORS
With the adoption of the U.S. Dollar (USD$) as the
legal currency since January 2001, the exchange
risk has been eliminated and inflation and active
interest rates have been the lowest in Latin America;
besides, mortgage credit terms have extended to
long term, promoting the acquisition of any type of
housing.
Due to the healthy fiscal policy of the government,
tributary revenue has increased and the fiscal deficit
has been reduced. Regarding external debt, this has
gone from 58% of the GDP in 2003 to 48% in 2009.
Consequently, we may say, that in the last 18 years
the economy has experienced a real average growth
of 3.9%, allowing a 3% expansion of the real GDP
per capita and supposedly reaching US$3,610 per
person in 2008, thus, placing itself as an economy
of average growth according to the World Bank
standards.
El Salvador’s economy wants to fy (Mitur)